A paradigm shift in development aid

In 2024, development aid from OECD countries was 7.1 % lower than the amount provided in 2023, a record year. Norwegian aid also decreased somewhat, largely due to the end of the one-year support package allocated in 2023 to alleviate the effects on countries affected by Russia's illegal war of aggression against Ukraine. This extra funding package was used to increase humanitarian aid and enhance food security. According to Norad, these are the areas that has shown the greatest decline in aid in 2024.

Despite the decrease, Norway was the only OECD country to use more than 1 per cent of its gross national income (GNI) on aid in 2024. In addition, Norway was one of only four countries that reached the UN target of spending 0.7 % of GNI on Official Development Assistance.

‘After six years of growth, development aid from OECD donors as a whole is showing a decline. Many donors are choosing to focus on areas that are closely aligned with their own interests. And in 2025, important donor countries have introduced rapid and far-reaching changes in their aid budgets. This will change the global aid framework considerably,’ said Mr Aukrust.

‘There is a paradigm shift in development aid policy under way. At the same time, the 2024 figures confirm that Norway remains a reliable development partner and provides a consistently high level of aid. The Labour Party will continue to give priority to this area in the future because we know that instability elsewhere in the world can quickly generate instability here at home. Development aid  is a means of safeguarding security for the future,’ said the Minister of International Development.

Ukraine was by far the largest single recipient of Norwegian aid in 2024. NOK 9,3 billion was provided as civilian support to help the Ukrainian people in their fight for freedom. At the same time, Norway maintained its general level of aid to other developing countries. In this respect, Norway differs significantly from other countries which, to a large extent, are shifting their support from the Global South to Ukraine.

‘Norway will continue to be a major contributor to Ukraine. Funding from Norway is used to provide humanitarian aid to those who live closest to the war and who have lost the most. In addition, our support from Norway helps Ukraine to maintain essential functions such as heat and light in peoples’ homes and salaries for teachers and nurses. This is fundamental to helping the Ukrainian people to stay resilient,’ said Mr Aukrust.

Norwegian aid to the poorest countries decreased slightly in 2024. This decrease is also due to the one-year support package allocated in 2023.

‘Continuing to provide a high level of aid to the poorest countries is important because they have only limited ability to use market forces to reduce poverty. To ensure that as much of the grant aid as possible goes to the countries most in need, we must consider solutions for alternative financing for other developing countries. This includes mobilising increased private investment. The guarantee scheme for renewable energy and Norfund are key instruments in this context,’ said Mr Aukrust.

While a number of traditional donors have announced aid cuts, many have shifted their priorities over the past several years to be more directly aligned with their own interests. The unexpected, wide-ranging and rapid cuts in the US aid budget have sent shock waves through the aid sector and the UN. For Norway, it is crucial to seek to promote an international system that can continue to deliver in this new landscape – and this is a clear area of focus.

‘The US aid budget for 2024 was more than 12 times Norway’s aid budget. It goes without saying that no country can fill this gap alone. Norway is working with the UN, donors and other organisations to build the aid architecture needed for the years ahead. These efforts are based on the fundamental values, such as gender equality, non-discrimination and human rights, that Norway stands for. We need to target our efforts where we can make the biggest difference,’ said Mr Aukrust.